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Haters gonna hate...A new, highly negative article on Motley Fool

Haters gonna hate...A new, highly negative article on Motley Fool

Submitted by TheAustin on Tue, 2012-10-09 08:29

It's so bad and so wrong, I can't even take it seriously or get that upset by it. But it's sad that articles like this are out there, and it's sad that a so-called industry expert can write such an incorrect assessment of a company, to the point where one clearly has to call his objectivity into question. Brace yourself:

i commented on the post that if journalist required a license, this guy's should be revoked. Furtheremore, TM should consider a lawsuit for slander or something. Not a lawyer.

Kal-el |
9 October, 2012

I think the article was removed, I'm getting a 404

mrspaghetti |
9 October, 2012

Ha! Funny, I've rarely seen articles so outrageous that they actually got pulled. But this one was a good candidate.

stephen.pace |
9 October, 2012

I had a good laugh about it this morning. Normally I comment, but it was so unbelievably bad I didn't know where to start. It was easier to point out which facts he had correct than incorrect. Since they deleted it, text reproduced here, typos and all:

John is a member of The Motley Fool Blog Network -- entries represent the personal opinions of our bloggers and are not formally edited.

A once vaunted car manufacturer of the future has hit yet another snag recently. Tesla Motors Inc (NASDAQ: TSLA), a car company that could’ve been the General Motors of Silicon Valley, has had to halt production of its vehicles, and sell 5 million shares to raise much needed revenue, sending the share price down 10% in value, the Wall Street Journal reported.

The new car Tesla was rolling out prior to the announcement, the Model S Electric Sedan, is running “between four and five weeks” behind schedule due to a lack of available capital, according to company sources. Even though they recieved (sic) a $465 million loan from the US Energy Department, the big share sale was necessary to keep capital coming in at a steady enough rate to keep the assembly lines rolling and to assure the US government the loans aren't going to a dying company.

Tesla has been slow to get off the ground since its founding in 2003. Its first car, the $109,000 Roadster, didn’t meet sales expectations, mostly due to its high price, long waiting lines, and general poor performance. The Model S would be Tesla’s second car, at a minimum price of $50,000 after a federal tax credit, but production has slowed due to business restructuring.

This year, Tesla and other green US car makers have been beset by problems, and the only thing keeping them afloat seems to be a combination of stock shares and bailout money. Fisker Automotive had its government subsidies suspended due to falling behind production deadlines for its mid-size sedan. The Anaheim, California based company received a $529 million award from the Department of Energy, according to the Wall Street Journal. Tesla is the most notable crisis because of the high expectations the company had that it is still unable to deliver. Unfortunately for the American taxpayer, the only thing keeping the businesses open seems to be Energy Department loans and stock shares.
At least Europe and Japan are still cranking out cars that work from companies that are actually profitable.Ford (NYSE: F) has just rolled out the new Fiesta, and it's received critical acclaim in the US and Europe, and at $14,000, it's a safer buy for the environmentally conscious family. Toyota Motors (NYSE: TM) continues to be an industry leader with its Prius, which ever since it came out has become synonymous with the green car movement. At a slightly higher $24,000 for the standard unit, its not cheap, but Toyota's name recognition gives it an advantage in the US marketplace.

All together, two-car Tesla is in trouble, and the Federal government may soon have to figure out whether or not the loans it's giving to them and Fisker are a worthy investment, or just buying time.

Elon's blog post addressed the misconceptions presented here. And, if I had to believe some barely literate "Fool" or the guy sending actual rockets to the actual space station...well...let's just say I'm not getting out of line for my Model S.